Friday, December 26, 2014


The Tuesday before Christmas I completed purchase of stakes in CLNY and PDLI.  Should see dividend income from CLNY starting in January, of course I plan on reinvesting the dividends to increase the number of shares owned.  I was impressed by the fact that both stocks have performed better in the short time I've held them than some of the stocks I held all year.  Due to poor performance from stock and bond funds in my portfolio, the overall performance for 2014 was lackluster to say the least.  Am looking forward to doing much better in 2015.

To that end, I plan to beef up individual stock holdings and take dividends from stock and bond funds in cash.  I've always been of the opinion that most individual investors would do much better to invest in stocks instead of mutual funds.  I purchased stakes in the funds I own now for the monthly dividends when I set up my new portfolio.  The idea being the cash flow would help rebuild the stock portion of my investments.  Now I've reached the point where I'll no longer reinvest dividends in the mutual funds.  Instead I'll divert those to cash and use the cash to build up shares in current holdings of individual stocks and purchase any new stocks, like the two above.  While I might not see such rapid growth in dividend income as I have the past two years, I believe I'll be much better positioned for growth and future dividend income.

Hope everyone had a great Christmas!  I sure did.  I'd like to again wish everyone a very Happy and Prosperous New Year!

No comments: